The Ontario Securities Commission approved proposed rule changes by the Investment Industry Regulatory Organization of Canada (IIROC) that disallow dealers from avoiding the self-regulatory organization’s oversight by carrying out trades through discount brokers.

The rules require dealers to access the markets through “an appropriate channel” and prohibit discount brokers from providing order execution only services to other registered dealers (or clients exempt from dealer registration).

IIROC is also introducing requirements for discount brokers to assign unique identifiers to accounts operated by registered advisers and foreign advisers.

These measures are designed to enhance IIROC’s market surveillance capabilities, to help it detect unusual trading activity and to “better address the risks of electronic trading.”